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July 12, 2019  

Issuers Set to Unleash Flood of New Deals

Get ready for a deluge of asset- and mortgage-backed bond offerings.

Bankers in the U.S. are readying some 20 transactions totaling $8 billion for July 15-19 — roughly twice this year’s average weekly output — as issuers race to squeeze in their last transactions before investors take time off in August.

The deal calendar for next week features some of the most-active issuers, including auto lenders General Motors Financial, Nissan, Santander Consumer USA and USAA; mortgage lenders New Residential Investment and Western Asset Management; and equipment lessor John Deere.

“For some of these issuers, this will be their last deals until the start of fall,” one banker said.

The heavy docket is supported by unfulfilled demand following the July 4th holiday break. Indeed, the market has been essentially dark the past two weeks, with only three deals totaling $962.4 million pricing in the U.S. from June 30 to July 11, according to Asset Backed Alert’s ABS Database.

The only deal to price this week: $221.2 million of bonds backed by rental-home cashflows from CoreVest Finance, with Morgan Stanley running the books.

Following the usual August slowdown, issuance is expected to pick up for a few weeks, then shut down briefly while industry professionals attend Information Management Network’s “ABS East” conference Sept. 22-24 at the Fontainebleau Hotel in Miami Beach.